Pineapple's Fruit Smoothies Began the Year with a $4,200 Credit

Pineapple's Fruit Smoothies began the year with a $4,200 credit balance in its Allowances for Doubtful Accounts. During the year, it accrued $21,500 of bad debt expense and wrote off accounts totaling $28,000. At year-end, a percentage of the outstanding accounts receivable indicated that a $4,800 allowance should be provided for on that date. The year-end adjustment for bad debt expense should be

A) $7,100
B) $4,800
C) $3,000
D) $2,300

Correct Answer:

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